Channel Conflict Matrix

Overview

Channel Conflict

• Channel conflict is behaviour by a channel member that is in opposition to its channel counterpart. (Anderson & Narus 1990; Morgan & Hunt 1994).

• The nature of conflict can create separation in channel relationships.

• The importance of managing channel conflict is important before it impacts commitment and trust.

Channel Conflict Matrix - Application

1. Identify the conflicts that you have with you current distributor partner.

2. Plot the conflicts based on the y axis based on degree of conflict and x axis intensity of conflict on the matrix.

3. Develop a communication plan to resolve or contain conflict with your channel partner.

Channel Conflict Matrix

Degree of

Conflict

High Conflict

Zone

High

Med

i.e. vendor sells direct

Intensity of

Conflict

Medium Conflict

Zone

Low Conflict

Zone

Med

Low

Minor DisagreementOccasional

Intense

Disagreements

Disputes of

Major impact

i.e. over distribution

i.e. backorder, stop credit

Key Points

• Conflict can be positive or negative

• Resolution strategies revolve around negotiation, problem solving, persuasive mechanisms, legalistic strategies.

• The success with which channel conflicts are resolved often depend on negotiationresolved often depend on negotiation

• Creating Mutual value through a series of trade offs “I will help you if you help me”

• Problem solving

• Interdependence the degree that each channel member needs the other.

5

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